Same-day settlement of financial transactions

ABSTRACT

A system and method to receive a financial transaction and transfer funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated. The financial transaction may be one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement using routing or transit numbers associated with an entity that receives the financial transaction.

CROSS-REFERENCE OF RELATED APPLICATIONS

The present application is a continuation application of U.S. patentapplication Ser. No. 11/555,421, filed Nov. 1, 2006, the contents ofwhich is incorporated herein by reference in its entirety.

BACKGROUND OF THE INVENTION

Automated clearinghouse (ACH) transactions provide a low-cost ways forsettling financial transactions. However, ACH and other conventionallow-cost ways for collecting payment funds require at least one day tosettle the financial transaction, resulting in at least one day ofdeposit float for each transaction.

This and other drawbacks exist with current systems.

SUMMARY OF THE INVENTION

Various exemplary embodiments provide a method to receive a financialtransaction and transfer funds associated with the financial transactioninto an account associated with an originator of the financialtransaction to settle the financial transaction on the same day that thefinancial transaction is originated. The financial transaction may beone of a plurality of financial transactions and the financialtransaction is identified as being eligible for same-day settlementusing routing or transit numbers associated with an entity that receivesthe financial transaction.

Various exemplary embodiments also provide a method including receivinginformation about a plurality of financial transactions, processing theinformation to determine whether at least one of the plurality offinancial transactions is eligible for same-day settlement, andtransmitting information about a financial transaction that is eligiblefor same-day settlement to a relationship bank based on a determinationthat at least one of the plurality of financial transactions is eligiblefor same-day settlement. To settle a financial transaction that iseligible for same-day settlement, the relationship bank electronicallytransfers funds associated with the financial transaction that iseligible for same-day settlement into an account associated with anoriginator of the financial transaction that is eligible for same-daysettlement.

Various exemplary embodiments also provide a system including aprocessor to receive information about a plurality of financialtransactions and a sorting mechanism to determine whether at least oneof the plurality of financial transactions is eligible for same-daysettlement and transmit information about a financial transaction thatis eligible for same-day settlement to a relationship bank based on adetermination that at least one of the plurality of financialtransactions is eligible for same-day settlement. To settle a financialtransaction that is eligible for same-day settlement, the relationshipbank electronically transfers funds associated with the financialtransaction that is eligible for same-day settlement into an accountassociated with an originator of the financial transaction that iseligible for same-day settlement.

Various exemplary embodiment may also provide a method includingreceiving a plurality of payment instructions, combining the pluralityof payment instructions into a financial transaction file, andtransmitting the financial transaction file to a processor for same-daysettlement. Each of the plurality of payment instructions may include anamount and a routing or transit number associated with an account forredeeming payment. The processor may compare the routing or transitnumbers associated with each of the plurality of payment instructions inthe financial transactions file with routing or transit numbersassociated with relationship banks to determine whether at least one ofthe plurality of payment instructions is eligible for same-daysettlement. Also, to settle a payment instruction that is eligible forsame-day settlement, the relationship bank electronically transfers theamount associated with the respective payment instruction that iseligible for same-day settlement into an account associated with therecipient of the payment instruction that is eligible for same-daysettlement.

Various exemplary embodiments may provide a computer-accessible mediumencoded with computer program code. In these embodiments the programcode may be effective to receive a financial transaction and transferfunds associated with the financial transaction into an accountassociated with an originator of the financial transaction to settle thefinancial transaction on the same day that the financial transaction isoriginated. The financial transaction may be one of a plurality offinancial transactions and the financial transaction is identified asbeing eligible for same-day settlement using routing or transit numbersassociated with an entity that receives the financial transaction.

Various exemplary embodiments may provide a computer-accessible mediumencoded with computer program code. In these embodiments the programcode may be effective to receive information about a plurality offinancial transactions, process the information to determine whether atleast one of the plurality of financial transactions is eligible forsame-day settlement, and transmit information about a financialtransaction that is eligible for same-day settlement to a relationshipbank based on a determination that at least one of the plurality offinancial transactions is eligible for same-day settlement. To settle afinancial transaction that is eligible for same-day settlement, therelationship bank electronically transfers funds associated with thefinancial transaction that is eligible for same-day settlement into anaccount associated with an originator of the financial transaction thatis eligible for same-day settlement.

Various exemplary embodiments may provide a computer-accessible mediumencoded with computer program code. In these embodiments the programcode may be effective to receive a plurality of payment instructions,combine the plurality of payment instructions into a financialtransaction file, and transmit the financial transaction file to aprocessor for same-day settlement. Each of the plurality of paymentinstructions may include an amount and a routing or transit numberassociated with an account for redeeming payment. The processor maycompare the routing or transit numbers associated with each of theplurality of payment instructions in the financial transactions filewith routing or transit numbers associated with relationship banks todetermine whether at least one of the plurality of payment instructionsis eligible for same-day settlement. To settle a payment instructionthat is eligible for same-day settlement, the relationship bankelectronically transfers the amount associated with the respectivepayment instruction that is eligible for same-day settlement into anaccount associated with the recipient of the payment instruction that iseligible for same-day settlement.

Various exemplary embodiments may also provide a method includingreceiving a financial transaction and transferring funds associated withthe financial transaction into an account associated with an originatorof the financial transaction to settle the financial transaction on thesame day that the financial transaction is originated. In theseembodiments, the financial transaction may be one of a plurality offinancial transactions and the financial transaction may be identifiedas being eligible for same-day settlement using an indicator associatedwith the financial transaction.

Other embodiments may be considered.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 depicts a schematic of a system and flow of data for processingfinancial transactions according to various embodiments of thedisclosure.

FIG. 2 depicts a schematic of a system and flow of data for processingfinancial transactions according to various embodiments of thedisclosure.

FIG. 3 depicts an exemplary method for processing financial transactionsaccording to various embodiments of the disclosure.

FIG. 4 depicts an exemplary system for processing financial transactionsaccording to various embodiments of the disclosure.

FIG. 5 depicts an exemplary system for processing financial transactionsaccording to various embodiments of the disclosure.

FIG. 6 depicts an exemplary system for processing financial transactionsaccording to various embodiments of the disclosure.

DETAILED DESCRIPTION OF EXEMPLARY EMBODIMENT(S)

Exemplary embodiments are discussed in detail below. While specificexemplary embodiments are discussed, it should be understood that thisis done for illustration purposes only. A person skilled in the relevantart will recognize that other components and configuration can be usedwithout departing from the spirit and scope of the claimed inventions.

Various exemplary embodiments provide for the same-day settlement offinancial transactions. In these embodiments, same-day settlement of afinancial transaction may refer to a financial transaction that settleson the same day that the financial transaction is originated. Forexample, referring to FIGS. 1 and 2, if a financial transaction isoriginated on Day 0, the financial transaction settles on Day 0, thusmaking the funds available to the recipient on Day 0. A financialtransaction may be originated, for example, when an entity firstrequests that the funds be transferred.

In various exemplary embodiments, to achieve and benefit from same-daysettlement of financial transactions, an originator of the financialtransaction may establish relationships with one or more relationshipbanks In these embodiments, the originator may, for example, own ademand deposit account at each of the respective one or morerelationship banks Also, the terms of the same-day settlement offinancial transactions may be negotiated and defined in an agreementbetween the originator and the respective one or more relationship banksFor example, the originator and relationship banks may agree to adeadline time for sending/receiving financial transactions that are tobe settled on the same day. Also, the originator and relationship banksmay agree to a benefit-sharing model as will be described in greaterdetail below. According to various benefit sharing models, theoriginator may pay the relationship in exchange for settling thefinancial transaction on the same day it was received.

Same-day settlement of financial transactions may reduce floatassociated with the transactions. Float may be referred to as the delaytime between when payments or deposits are received and when those fundsare actually available to the recipient. In various exemplaryembodiments, financial transactions may include, for example, creditand/or debit transactions, cash consolidation transactions, and thelike. For example, a customer may pay a bill online at a biller'swebsite, causing the biller to originate a debit transaction against thecustomer's bank account. Similarly, a customer may pay a bill onlineusing the customer's online banking services, causing the customer'sbank to originate a credit transaction to the biller. In other examples,a company may originate debit transactions against the company's localbank accounts to consolidate money into one central bank account. Othertransactions may also be considered in which same-day settlement offinancial transactions may occur.

As interest rates, such as the Federal Funds Rate, increase, depositfloat may also increase. Deposit float may refer to, for example, theopportunity cost associated with not possessing the funds. When interestrates increase, billing companies such as service providers (e.g.,utility companies and the like), financial institutions, and the likemay be motivated to reduce deposit float and the related opportunitycosts of not having immediate access to funds in the collection process.

Automated Clearinghouse (ACH) and other electronic channels may providea way to collect payment funds and/or processing other like financialtransactions. Conventional ACH transactions require at least one entireday to settle, meaning that the financial institution originating an ACHdebit or receiving an ACH credit will not be able to receive fundsavailable for use at least until the following business day. Under thismodel, for example, ACH float cannot be less than one business day, andthe cost of that float in a high interest rate environment may besubstantial.

Homebanking and other online bill payment services may provideconventional channels for processing financial transactions. Recentimprovements in efficiency within the payment industry, for example,have caused consumers to expect that those gains will be passed on tothe consumers through faster and more convenient methods for processingfinancial transactions. However, to date, these conventional channelsfor processing financial transactions do not provide for same-daysettlement or immediate posting of payment. Instead, most consumers willexperience at least a one to four day delay before the transaction isprocessed. Such a delay, for example, may be problematic for a consumerfacing an impending due date that requires processing before the atleast one to four day delay. Thus, consumers may benefit from a systemand method for processing financial transactions on the same day thatthe financial transaction is originated.

FIG. 1 depicts an exemplary embodiment of a system 100 for same-daysettlement of financial transactions. System 100 may include, forexample, an originator system 101, a processor/sorting mechanism 102,one or more relationship bank systems 103 a-103 n, a clearinghousesystem 104, and one or more other bank systems 105 a-105 n. Thecomponents depicted in FIG. 1 may be coupled via one or more networks.As referred to herein, a network may include, but is not limited to:e.g., a wide area network (WAN), a local area network (LAN), a globalnetwork such as the Internet, a telephone network such as a publicswitch telephone network, a wireless communication network, a cellularnetwork, an intranet, or the like, or any combination thereof. Inexemplary embodiments, the network may include one, or any number of theexemplary types of networks mentioned above operating as a stand alonenetwork or in cooperation with each other. Use of the term networkherein is not intended to limit the network to a single network.

Originator system 101 may be associated with an originator of thefinancial transaction. Exemplary originators may include withoutlimitation: a financial institution (e.g., a bank), a customer, abiller, an online bill paying customer, an online bill paying entity, anemployer, an employee, a company, or other like entity for originating afinancial transaction. Originator system 101 may include one or morenetwork-enabled computers to process instructions for originating afinancial transaction as will be described in greater detail below. Asreferred to herein, a network-enabled computer may include, but is notlimited to: e.g., any computer device, or communications deviceincluding, e.g., a personal computer (PC), a workstation, a mobiledevice, a phone, a handheld PC, a personal digital assistant (PDA), athin client, a fat client, an network appliance, an Internet browser, aserver, or other device.

The one or more network-enabled computers of originator system 101 mayexecute one or more software applications to, for example, receiveinformation about financial transactions, compile the information,format the information into a file, e.g., a batch file, and transmit theinformation to a processor/sorting mechanism. The one or morenetwork-enabled computers may also include one or more softwareapplications to, for example, enable and/or control the same-daysettlement of financial transactions.

Relationship bank systems 103 a-103 n may be associated with one or morerespective relationship banks In the example illustrated in FIG. 1, theoriginator associated with originator system 101 and the relationshipbanks associated with the respective one or more relationship banksystems 103 a-103 n may have a predefined relationship for enablingsame-day settlement of financial transactions. Also the one or morerelationship bank systems 103 a-103 n may be capable of receiving andprocessing same-day settlement financial transactions.

Relationship bank systems 103 a-103 n may include one or morenetwork-enabled computers to process instructions for same-daysettlement of a financial transaction as will be described in greaterdetail below. The one or more network-enabled computers of relationshipbank systems 103 a-103 n may execute one or more software applicationsto, for example, receive information about financial transactions andprocess the financial transactions.

Other bank systems 105 a-105 n may be associated with one or morerespective other banks In the example illustrated in FIG. 1, theoriginator associated with originator system 101 and the other banksassociated with the one or more other bank systems 105 a-105 n may nothave a predefined relationship for enabling same-day settlement offinancial transactions. Also, the one or more other bank systems 105a-105 n may not be capable of receiving or processing same-daysettlement financial transactions.

Other bank systems 105 a-105 n may include one or more network-enabledcomputers to process instructions for settling a financial transactionvia, for example, a clearinghouse system as described in greater detailbelow. The one or more network-enabled computers of other bank systems105 a-105 n may execute one or more software applications to, forexample, receive information about financial transactions and processthe financial transactions.

Clearinghouse system 104 may be associated with a clearinghouse entity.In various exemplary embodiments, a clearinghouse entity may includewithout limitation: an ACH clearinghouse (e.g., the Electronic PaymentsNetwork and/or the Federal Reserve Bank clearinghouse) and/or any otherlike entity capable of serving as a clearinghouse for financialtransactions (e.g., a proprietary clearinghouse). In such embodiments,the other banks associated with other bank systems 105 a-105 n may eachhold a financial account with the clearinghouse entity, for example, toenable settlement of financial transactions.

In various exemplary embodiments, originator system 101 may originate afinancial transaction. For example, upon receiving instructions from anoriginator (electronically or otherwise), originator system 101 mayoriginate a debit transaction and/or a credit transaction. Whenoriginating a debit transaction, originator system 101 may, for example,provide payment instructions to debit a deposit account associated withone of the relationship bank systems 103 a-103 n or one of the otherbank systems 105 a-105 n. When originating a credit transaction,originator system 101 may, for example, provide payment instructions tocredit a deposit account associated with one of the relationship banksystems 103 a-103 n or one of the other bank systems 105 a-105 n. In oneexample, originator system 101 may originate financial transactions as abatch-processed, value-dated electronic funds transfer betweenoriginator system 101 and one of the receiving systems (e.g., one of therelationship bank systems 103 a-103 n or one of the other bank systems105 a-105 n).

To originate financial transactions according to various exemplaryembodiments, originator system 101 may transmit one or more financialtransaction file(s) (1A) to processor/sorting mechanism 102. The one ormore financial transaction file(s) may include, for example, an ACHfile, e.g., an ACH batch file and/or any other like file for processingan electronic funds transfer between originator system 101 and thereceiving system (e.g., a proprietary file format). The one or morefinancial transaction file(s) may include, for example, routing andtransit numbers associated with the receiving systems, accountinformation associated with the account to be debited and/or creditedfor each transaction, payment information including accounts receivableor invoice record data, addenda records (e.g., purchase orderinformation), and/or any other information to enable same-day settlementand/or same-day commerce. Also, the one or more financial transactionfile(s) may include information associated with one or more financialtransaction(s). For example, financial transaction file(s) may includeinformation associated with one, some, or all of the credit and/or debitfiles to be originated by originator system 101 for a given period oftime (e.g., all files on Day 0, files before 12:00 p.m. on Day 0, filesafter 12:00 p.m., but before 9:00 p.m. on Day 0, or all files to BankXYZ on Day 0).

Where financial transactions are directed to one of the relationshipbank systems 103 a-103 n, the originator associated with the originatorsystem 101 and relationship bank associated with the respectiverelationship bank systems 103 a-103 n may agree as to a time during Day0 (e.g., 8:30 or 9:00 p.m.) by which financial transaction file(s) areto be transmitted and/or received to enable same-day processing. The oneor more financial transaction file(s) may then be transmitted and/orreceived in time for the relationship bank systems 103 a-103 n to run adaily posting process that applies debit and/or credit transactionsagainst demand deposit accounts.

Upon receipt of financial transaction file(s), processor/sortingmechanism 102 may process and sort the financial transaction file todetermine, for example, which financial transactions among the financialtransactions identified in the financial transaction file(s) areeligible for same-day processing. As noted above, financial transactionfile(s) may include routing and transit numbers associated with eachtransaction in the financial transaction file. Using, for example, therouting and transit numbers, processor/sorting mechanism 102 may sortthe financial transaction files to identify which financial transactionsare to be processed on the same day (e.g., Day 0) by the one or morerelationship bank systems 103 a-103 n. Also, the financial transactionsmay include an indicator to indicate that a financial transaction iseligible for same-day settlement. Where, for example the financialtransaction includes this indicator, processor/sorting mechanism 102 mayscan the financial transactions for the presence of this indicator toidentify which financial transactions are to be processed on the sameday (e.g., Day 0) by the one or more relationship bank systems 103 a-103n.

Those financial transactions that are to be processed on the same day(e.g., Day 0) by the one or more relationship bank systems 103 a-103 nmay be compiled by processor/sorting mechanism 102 into one or moresame-day settlement file(s). Those financial transactions that are notto be processed on the same day by the one or more relationship banksystems 103 a-103 n may be compiled by processor/sorting mechanism 102into one or more clearinghouse transaction file(s).

Processor/sorting mechanism 102 may also transmit same-day settlementfile(s) (1B) to the one or more relationship bank systems 103 a-103 nand clearinghouse transaction file(s) (1C) to clearinghouse system 104.In various exemplary embodiments, processor/sorting mechanism 102 maytransmit the same-day settlement file(s) (1B) and the clearinghousetransaction file(s) (1C) to the appropriate recipient using, forexample, the routing and transit numbers of the financial transactionsassociated with the same-day settlement file(s) and the clearinghousetransaction file(s).

Originator system 101 and/or processor/sorting mechanism 102 may becapable of controlling the same-day processing of financialtransactions. For example, when transmitting a financial transactionfile (1A), originator 101 may instruct processor/sorting mechanism 102to transmit all financial transactions (1C) directly to clearinghousesystem 104, regardless of whether the financial transactions within thefinancial transaction file(s) may be eligible for same-day settlement.This instruction may occur when, for example, transmission of thefinancial transaction file occurs after the agreed-upon time during Day0 for transmitting financial transaction files for same-day settlement.Also, processor/sorting mechanism 102 may include instructions tooverride or stop the sorting process. When such an override or stoppageof the sorting process occurs, the processor/sorting mechanism 102 maytransmit all financial transaction files directly to clearinghousesystem 104. The ability to control the same-day processing of financialtransactions may, for example, allow originator system 101 and/orprocessor/sorting mechanism 102 to start and stop the same-dayprocessing of financial transactions depending on, for example, the timeof day and/or day of the week, or other factors.

As shown in FIG. 1, processor/sorting mechanism 102 may be separate fromoriginator system 101. In such an embodiment, the processor/sortingmechanism 102 may serve as a third-party processor of the financialtransaction. For example, if the originator associated with originatorsystem 101 selects, the originator may outsource the processing andsorting of the originator's financial transactions to a third-partyprocessing/sorting entity associated with processor/sorting mechanism102 or otherwise establish those operations as separate operations.Processor/sorting mechanism 102 may therefore include one or morenetwork-enabled computer(s) to receive financial transaction files,process and sort the financial transaction files, and transmit thesorted files to the appropriate systems (e.g., relationship bank systems103 a-103 n and/or a clearinghouse system 104).

The operations performed by processor/sorting mechanism may bedistributed between and among the one or more network-enabled computers.For example, a first network-enabled computer may include a module toreceive financial transaction files, a second network-enabled computermay include a module to process and sort the financial transactionfiles, and a third network-enabled computer may include a module totransmit the sorted files to the appropriate systems. Also, a firstnetwork-enabled computer may include a module to perform a combinationof the operations of processor/sorting mechanism 102 and a secondnetwork-enabled computer may include a module to perform the remainingoperations of processor/sorting mechanism 102, for example.

The operations performed by processor/sorting mechanism may also bedistributed between and among a plurality of modules within asingle-network enabled computer. For example, a single network-enabledcomputer may include a receiving module to receive financial transactionfiles, a processing module to process the financial transaction files, asorting module to sort the financial transaction files, and atransmitting module to transmit the sorted files to the appropriatesystems.

Where, for example, incoming financial transaction files (1A) vary informat from either outgoing clearinghouse transaction files or same-daysettlement files, processor/sorting mechanism 102 may also includeconvert the incoming file formats into different file formats. Forexample, where incoming financial transaction files may be formattedusing an originator system specific file format, processor/sortingmechanism 102 may include convert the originator system specific fileformat into a file format that is acceptable for ACH transactions.Similarly, where incoming financial transaction files may be formattedusing ACH file formats, processor/sorting mechanism 102 may convert ACHfile format into a relationship-bank-system-specific file format fortransmitting same-day settlement files.

Upon receipt of same-day settlement file(s), relationship bank systems103 a-103 n may process the financial transactions identified in thesame-day settlement file(s) on the same day that the financialtransaction was originated (e.g., Day 0). To process a financialtransaction on the same day the financial transaction was originated,relationship bank systems 103 a-103 n may, for example, electronicallytransfer funds into a demand deposit account (1D) owned by theoriginator associated with the originator system 101 at one of therelationship banks associated with the respective relationship banksystems 103 a-103 n. For example, a biller (ABC Corp.) may have a demanddeposit account at one of the biller's customer's banks (e.g., BankXYZ). When the customer instructs the ABC Corp (originator) to debit anamount from the customer's account at Bank XYZ (relationship bank), toprocess that transaction on the same day, Bank XYZ may electronicallytransfer (1D) the amount from customer's demand deposit account at BankXYZ into ABC Corp's demand deposit account at Bank XYZ, as described ingreater detail below with respect to FIG. 4. Also, when using, forexample, an electronic bill pay service provided by Bank XYZ, thecustomer may instruct Bank to pay ABC Corp. an amount. In this example,to process the transaction on the same day, Bank XYZ may electronicallycredit an amount from the customer's demand deposit account at Bank XYZinto ABC Corp's demand deposit account at Bank XYZ, as described ingreater detail below with respect to FIG. 5.

By electronically transferring funds into a demand deposit accountassociated with originator system 101 on the same day, the originatorassociated with originator system 101 may reduce or eliminate the floatassociated with processing the financial transaction. Doing so may availthe originator of the funds associated with the financial transaction onthe same day that the financial transaction was originated. With accessto the funds, the originator system 101 may, for example, then post thetransaction. The originator may also benefit from accessing the funds byoptionally instructing the relationship bank system, for example, tooptionally sweep (1E) the funds into an overnight investment account.

By optionally sweeping the funds (1E) into an overnight account, theoriginator associated with originator system 101 and/or the originatormay receive the benefit of possessing the funds in an overnight account.For example, if the Federal Funds Rate or some other interest rateassociated with the overnight sweep account is five percent on the nightthat the overnight sweep occurs, the originator associated withoriginator system 101 and/or originator system 101 may receive one day'sworth of the five percent interest on the funds that the originatorsystem 101 possesses as a result of the same-day transaction settlement.The originator may also receive periodic value benefits to offset feeswith a monthly earnings credit, for example.

In various exemplary embodiments, to process a financial transaction onthe same day the financial transaction was originated, relationship banksystems 103 a-103 n may also, for example, wire transfer the funds orengage a clearinghouse to net the transaction for settlement on the sameday that the transaction was originated.

In exchange for receiving this benefit of same-day settlement, under,for example, a sharing model, originator system 101 may provide therelationship bank system 105 a-105 n that processed the transaction withan explicit per-item fee revenue. As will be discussed in greater detailbelow, the originator associated with originator system 101 and therelationship bank associated with the respective one or morerelationship bank systems 105 a-105 n may establish any number ofpredefined revenue sharing models.

As noted above, financial transactions file(s) that are not eligible forsame-day settlement may be compiled by processor/sorting mechanism 102into clearinghouse transaction file(s) and transmitted (1C) toclearinghouse system 104 for processing. Clearinghouse system 104 mayfunction in a manner similar to that of a conventional clearinghousesuch as, e.g., the Electronic Payments Network and/or the FederalReserve Bank clearinghouse. In these embodiments, the financialtransactions associated with the clearinghouse file(s) may settle (1F)at least one day after the financial transaction is originated (e.g.,Day 1). Moreover, both of the originator associated with originatorsystem 101 and the other bank associated with the respective one or moreother bank systems 105 a-105 n may be required to pay a per transactionfee to a clearinghouse associated with clearinghouse system 104.

As illustrated in FIG. 1, system 100 may enable returns and adjustments(1G) between the components of the system.

FIG. 2 depicts another exemplary embodiment of a system 200 for same-daysettlement of financial transactions. System 200 may include, forexample, an originator system 101, a processor/sorting mechanism 102,one or more relationship bank systems 103 a-103 n, a clearinghousesystem 104, and one or more other bank systems 105 a-105 n. Thecomponents of FIG. 2 being represented by the same reference numbers ascomponents depicted in FIG. 1 illustrate identical, functionallysimilar, and/or structurally similar components as described above withrespect to FIG. 1.

As shown in FIG. 2, in various exemplary embodiments, processor/sortingmechanism 102 may be a component of originator system 101. In theseembodiments, processor/sorting mechanism 102 may include one or moremodules executing on a computing device within originator system. Forexample, as noted above, originator system may include one or morenetwork-enabled computers. The one or more network-enabled computers mayexecute one or more modules to, for example, receive information aboutfinancial transactions, compile the information, format the informationinto a file, e.g., a batch file, and sort the information into financialtransactions that are eligible for same-day settlement and financialtransactions that are not eligible for same-settlements. The one or morenetwork-enabled computers may also include one or more modules to, forexample, enable and/or control the same-day settlement of financialtransactions as described above.

As shown in FIG. 2, financial transaction file(s) may be input (2A) intoprocessor/sorting mechanism 102 from within originator system 101. Inthese embodiments, originator system 101, in combination withprocessor/sorting mechanism 102, may process and sort the financialtransaction files to determine which financial transactions are eligiblefor either same-day settlement or settlement via a clearinghouse andproperly format the outgoing respective same-day settlement file(s) andclearinghouse transaction file(s). The combination of originator system101 and processor/sorting mechanism 102 may include one or morenetwork-enabled computers to originate financial transactions andprocess and sort the financial transaction as described with respect toFIG. 1.

FIG. 3 depicts an exemplary flow chart 300 which illustrates anexemplary method for same-day settlement of financial transactions.

In block 301, relationships may be established with relationship banks.In various exemplary embodiments, an originator (of a financialtransaction) may be associated with an originator system and a receivingbank (of the financial transaction) may be associated with arelationship bank system or an other bank system, for example. Also, anoriginator may have a relationship with the relationship banks toprovide same-day settlement of financial transactions.

To establish a relationship, the originator and relationship banks mayestablish parameters for the same-day settlement or financialtransactions. For example, the relationship banks may identify eligiblerouting and transit numbers associated with relationship banks that arecapable of settling financial transactions on the same day that thetransaction is originated. The originator and the relationship bank mayestablish a mechanism for communicating data associated with thesame-day settlement of financial transactions. For example, theoriginator and relationship bank may communicate via network-enabledcomputers that transmit conventional encrypted ACH batch files. Also,the originator and relationship bank may communicate via network-enabledcomputers that transmit one or more files, e.g., batch files accordingto a specification that may be defined by the originator for therelationship banks This specification may define, for example, the datathat may be included in the file (e.g., transaction and routing numbersand/or any other data about the originator, relationship banks and/orfinancial transaction), the type of encryption for the data and/or files(e.g., public or private encryption), and/or any other information thatenables same-day settlement of financial transactions between theoriginator and the relationship banks

The originator and the relationship bank may also establish deadlinesfor transmitting and/or receiving financial transaction information suchthat those financial transactions received before the deadline willsettle on the same day the transactions originate. For example, theoriginator and the relationship bank may establish that all financialtransactions transmitted by the originator before 8 p.m. are eligiblefor same-day settlement. Also, the originator and the relationship bankmay establish that all financial transactions that are received by therelationship bank before 9 p.m. are eligible for same-day settlement andthat all financial transactions received by the relationship bank after9 p.m. will be settled on, for example, the following day.

The originator may also establish a demand deposit account at therelationship bank to, for example, receive the funds associated withfinancial transactions.

The originator and the relationship bank may also establish a sharingmodel for sharing the benefits associated with the same-day settlementof financial transactions as described in greater detail below.

In block 302, financial transaction information may be received by aprocessor and/or sorting mechanism. An originator system may receiveinformation about one or more financial transactions to be processedbetween an originator system and a receiving bank. For example, anoriginator system may receive information about a debit, credit, cashconsolidation, and/or like financial transaction. This information mayinclude data about individual financial transactions that may becompiled into, for example, one or more batch files (e.g., an ACH batchfile and/or any other like file) for processing an electronic fundstransfer.

The one or more files may then be processed and/or sorted. For example,the one or more files may be transmitted in a secure and/or encryptedmanner for processing and sorting.

In block 303, financial transaction information may be sorted, forexample, by a processor and/or sorting mechanism. As noted above, thoserelationship banks that may settle financial transactions on the sameday may identify themselves by routing and transit number. Using, forexample, the routing and transit numbers contained in financialtransaction files, a determination may be made as to which financialtransactions are eligible for same-day settlement and which financialtransactions are not eligible for same-day settlement. For example, acomparison may be made between routing and transit numbers associatedwith the financial transactions and routing and transit number that havebeen identified by relationship banks to determine whether a financialtransaction is eligible for same-day settlement. If for example, therouting and transit number associated with the financial transactionmatch routing and transit numbers identified by the relationship bank,the financial transaction may be eligible for same-day settlement.

If, in block 304 it is determined that a financial transaction iseligible for same-day settlement, in block 305 a determination may bemade as to whether the financial transaction has been transmitted and/orreceived on time. As noted above, a originator and relationship bank mayestablish deadlines for transmitting and/or receiving financialtransactions for same-day settlement. If it is determined that afinancial transaction is eligible for same-day settlement and thefinancial transaction has been transmitted and/or received on time, thetransactions eligible for same-day settlement may be transmitted to therelationship banks in block 306. The transactions eligible for same-daysettlement may be transmitted to the relationship banks using, forexample, the routing and transit numbers associated with therelationship banks If it is determined that a financial transaction isnot eligible for same-day settlement and/or the financial transactionhas not been transmitted and/or received on time, the transactions thatare not eligible for same-day settlement may be transmitted to the aclearinghouse, for example, in block 310.

In block 307, upon receiving a transaction that is eligible for same-daysettlement, a relationship bank may post and settle the transaction onthe same day that the transaction was originated. To post and settle thetransaction on the same day that the transaction was originated, therelationship bank may post the transaction against an account at therelationship bank from which the funds are being drawn andelectronically transfer the funds into the demand deposit account ownedby the originator at the relationship bank.

Because the funds may be transferred into a demand deposit account ownedby the originator at the relationship bank on the same day that thefinancial transaction was originated, the originator may benefit frompossessing the funds on the same day. To benefit from possessing thefunds on the same day, in block 308, the funds may optionally be sweptinto an overnight investment account. Doing so may avail the originatorof the interest accrued on the funds in the overnight investmentaccount. In an exemplary embodiment of the invention, the funds may bereturned to the originator's demand deposit account at the relationshipbank the following day along with the accrued interest.

In block 309, the originator (via, for example, the originator system),may pay the relationship bank according to a sharing model. Theoriginator may pay the relationship bank, for example, an explicitper-item fee revenue in exchange for settling the financial transactionon the same day. In these embodiments, the per-item charge may bedetermined as a percentage of the float value of the item. For example,the funds associated with the financial transaction may be $500, and theapplicable interest rate for the overnight investment account is fivepercent. In establishing a relationship, the originator and therelationship bank may establish a value sharing model of, for example,forty percent. Because settling the transaction on the same day as thetransaction is originated may reduce float by one day, for example, theone day of float may be $0.0685 (calculated as $500×0.05/365=$0.0685)and this value may represent the total value captured by reducing thefloat from one day to zero days. Because the originator and relationshipbank established that the receiving bank is to receive forty percent ofthis value through an explicit fee, the originator may pay $0.0274 peritem to the relationship bank (calculated as $0.0685×0.4=$0.0274). Insuch an example, the sending party may receive, for example, $0.0411 asa per item benefit.

Other like sharing models may also be considered. For example, theoriginator may pay the relationship bank an explicit per item feerevenue as well as a percentage of the interest obtained as a result ofthe investment in the overnight sweep. Accordingly, the sharing modelmay be based on a static per item fee and/or a moving scale based oninterest rates. In various exemplary embodiments, to receive payment,the relationship bank may debit the originator's demand deposit account.The relationship bank may also provide an invoice to the originator.

In block 311, transactions that are not eligible for same-day settlementmay be posted and settled in a manner that is similar to clearing ACHtransactions via a clearinghouse, for example.

FIG. 4 depicts an exemplary system 400 for the same-day settlement of adebit transaction. The components illustrated in FIG. 4 may be coupledvia one or more networks as described above. In the example shown inFIG. 4, customer 401 may pay a biller associated with biller system 404using funds located in customer demand deposit account 411 a at acustomer bank associated with customer bank system 411; customer 402 maypay the biller using funds located in customer demand deposit account412 a at a customer bank associated with customer bank system 412; andcustomer 403 may pay the biller using funds located in customer demanddeposit account 413 a at customer bank system 412. As illustrated inFIG. 4, customer bank system 411 and a customer bank associated withcustomer bank system 412 may be associated with relationship banks andcustomer bank 413 may not be associated with a relationship bank. Thebiller associated with biller system 404 may establish a relationshipwith the customer bank associated with customer bank system 411 and thecustomer bank associated with customer bank system 412 in a similarmanner as described above with respect to FIG. 3. Also, the billerassociated with biller system 404 may not establish a relationship withthe customer bank associated with customer bank system 413 and/orcustomer bank may not be capable of settling financial transactions onthe same day the transaction is originated.

In the example illustrated in FIG. 4, the customers 401, 402, 403 may becustomers of the biller associated with biller system 404. For example,the customers 401, 402, 403 may be cardholders of a credit card company(the biller) and the credit card company may have a biller system (e.g.,biller system 404) for processing bill payments. The customers 401, 402,403 may also be recipients of a service (e.g., cable, telephone, mobilephone, power, water) from a utility company (the biller) and the utilitycompany may have a biller system (e.g., biller system 404) forprocessing bill payments. The customers 401, 402, 403 may also be adebtor of a creditor (the biller) and the creditor may have a billersystem (e.g., biller system 404) for processing bill payments. Otherexamples may be considered.

As noted above, the customers 401, 402, 403 may desire to pay a billerassociated with biller system 404. Customers 401, 402, 403 may providepayment instructions via, for example, a respective client device 401 a,402 a, 403 a. In various exemplary embodiments, as referred to herein, aclient device may include, but is not limited to: e.g., any computerdevice, or communications device including, e.g., a personal computer(PC), a workstation, a mobile device, a phone, a handheld PC, a personaldigital assistant (PDA), a thin client, a fat client, an networkappliance, an Internet browser, a paging, an alert device, a television,an interactive television, a receiver, a tuner, a high definition (HD)television, an HD receiver, a video-on-demand (VOD) system, a server, orother device.

Client devices 401 a, 402 a, 403 a may execute an application, such asfor example, a web application, that is presented to the user via a userinterface on the client device. For example, using client devices 401 a,402 a, 403 a, customers 401, 402, 403 may access a web page hosted bybiller system 404 for enabling electronic payment of bills (e.g., anelectronic bill pay Website). Also, client devices 401 a, 402 a, 403 amay execute a standalone application that may be installed on clientdevices 401 a, 402 a, 403 a for enabling electronic payment of bills.For purposes of this discussion, the example illustrated in FIG. 4 willbe described in the context of client devices 401 a, 402 a, 403 aexecuting a web application that is presented to the customer via a userinterface on the client device. Also, for purposes of this discussion,assume that customer 401 will pay biller the amount of $100; customer402 will pay the biller the amount of $200; and customer 403 will paybiller the amount of $300.

Using the web application executing on client device 401 a, for example,customer 401 may provide electronic payment instructions (4A) to clientdevice 401 a to pay the biller associated with biller system 404 theamount of $100 from customer demand deposit account 411 a located in anaccount within customer bank system 411. The payment instructions mayinclude, for example, information associated with customer demanddeposit account 411 a, routing and transit numbers associated withcustomer bank system 411 and/or any other information to complete thefinancial transaction. These instructions may be transmitted to billersystem 404 over a network (4B), for example. Similarly, using the webapplication executing on client device 402 a, for example, customer 402may provide electronic payment instructions (4C) to client device 402 ato pay the biller associated with biller system 404 the amount of $200from customer demand deposit account 412 a located in an account withincustomer bank system 412. The payment instructions may include, forexample, information associated with customer demand deposit account 412b, routing and transit numbers associated with customer bank system 412and/or any other information to complete the financial transaction.These instructions may be transmitted to biller system 404 over anetwork (4D), for example. Similarly, using the web applicationexecuting on client device 403 a, for example, customer 403 may provideelectronic payment instructions (4E) to client device 403 a to pay thebiller associated with biller system 404 the amount of $300 fromcustomer demand deposit account 413 a located in an account withincustomer bank system 413. The payment instructions may include, forexample, information associated with customer demand deposit account 413a, routing and transit numbers associated with customer bank system 413and/or any other information to complete the financial transaction.These instructions may be transmitted to biller system 404 over anetwork (4F), for example.

Biller system 404 may receive the payment instructions from thecustomers 401, 402, 403. In various exemplary embodiments, biller system404 may, for example, convert the separate payment instructions intodebit transactions and compile the debit transactions into a financialtransaction file that contains the payment instructions associated witheach debit transaction. In the example illustrated in FIG. 4, thefinancial transaction file may contain information about three debittransactions: a first transaction debiting $100 from customer demanddeposit account 411 a; a second transaction debiting $200 from customerdemand deposit account 412 a; and a third transaction debiting $300 fromcustomer demand deposit account 413 a.

In various exemplary embodiments, the financial transaction file may be,for example, an ACH transaction file and/or a like batch file. Billersystem may then pass the financial transaction file to processor/sortingmechanism 405. Also, biller system may receive the separate paymentinstructions and then pass the separate payment instructions directly toprocessor/sorting mechanism 405.

Upon receipt of the financial transaction file, processor/sortingmechanism 405 may sort the financial transaction file. To sort thefinancial transaction file, processor/sorting mechanism 405 may use, forexample, the routing and transit number associated with the customerbank systems 411, 412, 413 to determine which financial transaction maybe eligible for same-day settlement and which financial transactions maynot be eligible for same day settlement. As noted above, those financialtransactions that may be eligible for same-day settlement may includethose financial transactions that are associated with relationship banks

In the example illustrated in FIG. 4, because the biller associated withbiller system 404 may have a relationship with the customer bankassociated with customer bank system 411 and the customer bankassociated with customer bank system 412, based on routing and transitnumbers previously identified by the relationship banks (e.g., customerbank system 411 and customer bank system 412), processor/sortingmechanism may determine that the first and second debit transactions inthe financial transaction file may be eligible for same-day settlement.Because the biller associated with biller system 404 may not have arelationship with the customer bank associated with customer bank system413, processor/sorting mechanism may determine that the third debittransaction in the financial transaction file may not be eligible forsame-day settlement.

Biller system 404 may then originate debit transactions by transmittingthe sorted files to the customer banks for settlement. For example,biller system 404 may originate a debit transaction by transmitting thefirst financial transaction to customer bank system 411 for same-daysettlement (4G). Similarly, biller system 404 may originate a debittransaction by transmitting the second financial transaction to customerbank system 412 for same-day settlement. Biller system 404 may alsooriginate a debit transaction by transmitting the third financialtransaction to clearinghouse system 406 for settlement (4I) via aclearinghouse.

Upon receipt of the first debit transaction, customer bank system 411may settle the debit transaction on the same day that the debittransaction was originated. To settle the first debit transaction on thesame day that the first debit transaction was originated, customer banksystem 411 may electronically transfer $100 from customer demand depositaccount 411 a into biller demand deposit account 411 b (4J), forexample. Similarly, upon receipt of the second debit transaction,customer bank system 412 may settle the debit transaction on the sameday that the debit transaction was originated. To settle the seconddebit transaction on the same day that the debit transaction wasoriginated, customer bank system 412 may electronically transfer $200from customer demand deposit account 412 a into biller demand depositaccount 412 b (4K), for example.

Upon receipt of the third debit transaction, clearinghouse system 406may settle the third debit transaction at least one day after the thirddebit transaction was originated. In an exemplary embodiment,clearinghouse system 406 may settle the third debit transaction via, forexample, a conventional clearinghouse system such as the ElectronicPayments Network and/or the Federal Reserve Bank clearinghouse (4L).

FIG. 5 depicts an exemplary system 500 for the same-day settlement of acredit transaction. The components illustrated in FIG. 5 may be coupledvia one or more networks as described above. In the example shown inFIG. 5, customer 501 may pay a biller associated with biller demanddeposit account 511 b using funds located in customer demand depositaccount 511 a at a customer bank associated with customer bank system504; customer 502 may pay a biller associated with biller demand depositaccount 512 b using funds located in customer demand deposit account 512a at a customer bank associated with customer bank system 504; andcustomer 503 may pay a biller associated with biller system 507 usingfunds located in customer demand deposit account 513 a at a customerbank associated with customer bank system 504. The customer bankassociated with customer bank system 504 may have a relationship withthe billers associated with biller demand deposit account 511 b andbiller demand deposit account 512 b. The customer bank associated withcustomer bank system 504 may not have a relationship with the billerassociated with biller system 507.

In the example illustrated in FIG. 5, the customers 501, 502, 503 may becustomers of the customer bank associated with customer bank system 504.Customers 501, 502, 503 may provide payment instructions via, forexample, a respective client device 501 a, 502 a, 503 a. Client device501 a, 502 a, 503 a may execute, for example, an application such as aweb application, that is presented to the user via a user interface onthe client device. For example, using client devices 501 a, 502 a, 503a, customers 501, 502, 503 may access a web page hosted by customer banksystem 504 for enabling electronic payment of bills (e.g., an electronicbill pay Website). Also, client devices 501 a, 502 a, 503 a may executea standalone application that may be installed on client devices 501 a,502 a, 503 a for enabling electronic payment of bills.

For purposes of this discussion, the example illustrated in FIG. 5 willbe described in the context of client devices 501 a, 502 a, 503 aexecuting a web application that is presented to the customer via a userinterface on the client device. Also, for purposes of this discussion,assume that customer 501 will pay a biller the amount of $100; customer502 will pay a biller the amount of $200; and customer 503 will pay abiller the amount of $300. As shown and described, FIG. 5 illustratesfunds being credited from a demand deposit account. In various exemplaryembodiments, funds may also be credited from, for example, any consumerand/or corporate transaction account (e.g., a credit card or othersimilar account). In those embodiments, transactions may be settled onthe same day by electronically transferring funds from the consumerand/or corporate transaction account to a demand deposit account ouranother consumer and/or corporate transaction account.

Using the web application executing on client device 501 a, for example,customer 501 may provide electronic payment instructions (5A) to clientdevice 501 a to pay the biller associated with biller demand depositaccount 511 b the amount of $100 from customer v 511 a located in anaccount within customer bank system 504. The payment instructions mayinclude, for example, information associated with customer demanddeposit account 511 a, routing and transit numbers associated withbiller demand deposit account 511 b and/or any other information tocomplete the financial transaction. These instructions may betransmitted to customer bank system 504 over a network (5B), forexample. Similarly, using the web application executing on client device502 a, for example, customer 502 may provide electronic paymentinstructions (5C) to client device 502 a to pay the biller associatedwith biller demand deposit account 512 b the amount of $200 fromcustomer demand deposit account 512 a located in an account withincustomer bank system 504. The payment instructions may include, forexample, information associated with customer demand deposit account 512b, routing and transit numbers biller demand deposit account 512 band/or any other information to complete the financial transaction.These instructions may be transmitted to customer bank system 504 over anetwork (5D), for example. Similarly, using the web applicationexecuting on client device 503 a, for example, customer 503 may provideelectronic payment instructions (5E) to client device 503 a to pay thebiller associated with biller system 507 the amount of $300 fromcustomer demand deposit account 513 a located in an account withincustomer bank system 504. The payment instructions may include, forexample, information associated with customer demand deposit account 513a, routing and transit numbers associated with biller system 507 and/orany other information to complete the financial transaction. Theseinstructions may be transmitted to customer bank system 504 over anetwork (5F), for example.

Customer bank system 504 may receive the payment instructions from thecustomers 501, 502, 503. In various exemplary embodiments, customer banksystem 504 may, for example, convert the separate payment instructionsinto credit transactions and compile the credit transactions into afinancial transaction file that contains the payment instructionsassociated with each credit transaction. In the example illustrated inFIG. 5, the financial transaction file may contain information aboutthree credit transactions: a first transaction crediting $100 fromcustomer demand deposit account 511 a; a second transaction crediting$200 from customer demand deposit account 512 a; and a third transactioncrediting $300 from customer demand deposit account 513 a.

In various exemplary embodiments, the financial transaction file may be,for example, an ACH transaction file and/or a like batch file. Customerbank system may then pass the financial transaction file toprocessor/sorting mechanism 505. Also, customer system may receive theseparate payment instructions and then pass the separate paymentinstructions directly to processor/sorting mechanism 505.

Upon receipt of the financial transaction file, processor/sortingmechanism 505 may sort the financial transaction file. To sort thefinancial transaction file, processor/sorting mechanism 505 may use, forexample, routing and transit numbers to determine which financialtransaction may be eligible for same-day settlement and which financialtransactions may not be eligible for same day settlement. As notedabove, those financial transactions that may be eligible for same-daysettlement may include those financial transactions that are associatedwith billers that have a relationship with the customer bank associatedwith customer bank system 504.

In the example illustrated in FIG. 5 because the biller associated withbiller demand deposit account 511 a and biller demand deposit account512 a may have a relationships with the customer bank associated withcustomer bank system, based on routing and transit numbers previouslyidentified by the billers (e.g., the biller associated with billerdemand deposit account 511 a and the biller associated with 512 a),processor/sorting mechanism may determine that the first and secondcredit transactions in the financial transaction file may be eligiblefor same-day settlement. Because the biller associated with billersystem 507 may not have a relationship with the customer bank associatedwith customer bank system 504, processor/sorting mechanism may determinethat the third credit transaction in the financial transaction file maynot be eligible for same-day settlement.

Customer bank system 504 may then originate credit transactions. Forexample, biller system 504 may originate a credit transactions for thefirst and second credit transactions that are eligible for same-daysettlement within customer bank system 504. Customer bank system 504 mayalso originate a credit transaction by transmitting the third financialtransaction to clearinghouse system 506 for settlement (5G) via aclearinghouse.

Customer bank system 504 may settle the first and second credittransactions on the same day that the first and second credittransactions were originated. To settle the first credit transaction onthe same day that the first credit transaction was originated, customerbank system 504 may electronically transfer $100 from customer demanddeposit account 511 a into biller demand deposit account 511 b (5H), forexample. Similarly, customer bank system 504 may settle the secondcredit transaction on the same day that the second credit transactionwas originated. To settle the second credit transaction on the same daythat the credit transaction was originated, customer bank system 504 mayelectronically transfer $200 from customer demand deposit account 512 ainto biller demand deposit account 512 b (5I), for example.

Upon receipt of the third credit transaction, clearinghouse system 506may settle the third debit transaction at least one day after the thirdcredit transaction was originated. In an exemplary embodiment,clearinghouse system 506 may settle the third debit transaction via, forexample, a conventional clearinghouse system such as the ElectronicPayments Network and/or the Federal Reserve Bank clearinghouse (5K).

FIG. 6 depicts an exemplary system 600 for the same-day settlement ofcash consolidation transactions. In various exemplary embodiments, cashconsolidation transactions may include one or more debit transactionswhich may debit funds from local banks into a central bank, for example.The components illustrated in FIG. 6 may be coupled via one or morenetworks as described above.

In the example illustrated in FIG. 6 an entity (e.g., a company or otherentity which may have locations throughout a large geographical region)may be associated with corporate accounting system 603; a central bankmay be associated with central bank system 601; a first local bank maybe associated with local bank system 604; and a second local bank may beassociated with local bank system 605.

The entity associated with corporate accounting system 603 may haveseveral local offices throughout a geographical region. Each localoffice may be associated with a local bank. For example, a first localoffice of the entity may be associated with the first local bank.Similarly, a second local office of the entity may be associated withthe second local bank.

Periodically (e.g., daily, weekly, monthly), the entity may desire toconsolidate the cash it maintains in the entity's local bank accounts(e.g., corporate local demand deposit account 603 a and 603 b). Toconsolidate the cash, corporate accounting system may monitor the cashthat is deposited into corporate local demand deposit account 603 a and603 b and originate debit transactions against corporate local demanddeposit account 603 a and 603 b to electronically transfer the fundscorporate central demand deposit account 606.

To originate debit transactions against corporate local demand depositaccount 603 a and 603 b, corporate accounting system 603 may transmit afinancial transaction file (6A) to central bank system 601. In variousexemplary embodiments, the financial transaction file may be, forexample, an ACH transaction file and/or a like batch file. The financialtransaction file may contain information about two debit transactions: afirst transaction debiting $1000 from customer demand deposit accountcorporate local demand deposit account 603 a and a second transactiondebiting $2000 from corporate local demand deposit account 603 b.Information about the first debit transaction may include, for example,information associated with corporate local demand deposit account 603a, routing and transit numbers associated with local bank system 604and/or any other information to complete the financial transaction.Information about the second debit transaction may include, for example,information associated with corporate local demand deposit account 603b, routing and transit numbers associated with local bank system 605and/or any other information to complete the financial transaction. Thisfile may be transmitted to central bank system 601 over a network.

Upon receipt of the financial transaction file, processor/sortingmechanism 602 may sort the financial transaction file. To sort thefinancial transaction file, processor/sorting mechanism 602 may use, forexample, the routing and transit number associated with the local banksystems 604, 605 to determine whether the financial transactions may beeligible for same-day settlement. In the example illustrated in FIG. 6,those financial transactions that may be eligible for same-daysettlement may include those financial transactions that are associatedwith relationship banks (e.g., the local bank associated with local banksystem 604 and the local bank associated with local bank system 605).

Central bank system 601 may then transmit the debit transactions to thelocal banks for same-day settlement. For example, central bank system601 may transmit the first financial transaction to local bank system604 for same-day settlement (6B). Similarly, central bank system 601 maytransmit the second financial transaction to local bank system 605 forsame-day settlement (6C).

Upon receipt of the first debit transaction, local bank system 604 maysettle the debit transaction on the same day that the debit transactionwas originated. To settle the first debit transaction on the same daythat the first debit transaction was originated, local bank system 604may electronically transfer $1000 from corporate local demand depositaccount 603 a into central bank demand deposit account 601 a (6D), forexample. Similarly, upon receipt of the second debit transaction, localbank system 605 may settle the debit transaction on the same day thatthe debit transaction was originated. To settle the second debittransaction on the same day that the debit transaction was originated,local bank system 605 may electronically transfer $2000 from corporatelocal demand deposit account 603 b into central bank demand depositaccount 601 b (6E), for example.

Because central bank possesses the funds in central bank demand depositaccount 601 a and central bank demand deposit account 601 b, centralbank may make those funds available to the entity on the same day thatthe financial transactions were originated. Local bank systems 604, 605may optionally sweep the funds in central bank demand deposit account601 a, 601 b, respectively, into an overnight investment vehicle toenable the entity to benefit from interest earned in an overnight sweepaccount. Central bank system may ultimately retrieve the funds (with theinterest or a portion of the interest earned in the overnight investmentvehicle) (6F) from central bank demand deposit account 601 a and centralbank demand deposit account 601 b (6G) and electronically transfer thosefunds (with the interest or a portion of the interest earned in theovernight investment vehicle) into corporate central demand depositaccount 606. The amount of interest transferred into corporate centraldemand deposit account 606 may be determined by a sharing model that thecentral bank has established with the entity. Similarly, the centralbank system may pay the local banks according to a sharing model inexchange for the same-day settlement of the financial transactions.

The present disclosure is not to be limited in scope by the specificembodiments described herein. Indeed, other various embodiments of andmodifications to the present disclosure, in addition to those describedherein, will be apparent to those of ordinary skill in the art from theforegoing description and accompanying drawings. Thus, such otherembodiments and modifications are intended to fall within the scope ofthe present disclosure. Further, although the present disclosure hasbeen described herein in the context of a particular implementation in aparticular environment for a particular purpose, those of ordinary skillin the art will recognize that its usefulness is not limited thereto andthat the present disclosure may be beneficially implemented in anynumber of environments for any number of purposes. Accordingly, theclaims set forth below should be construed in view of the full breadthand spirit of the present disclosure as described herein.

1. A method comprising: receiving a financial transaction; determining whether the financial transaction is eligible for same-day settlement; and if the financial transaction is eligible for same-day settlement, transferring funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated, wherein the financial transaction is one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement using routing or transit numbers associated with an entity that receives the financial transaction.
 2. The method according to claim 1, wherein the account comprises a demand deposit account.
 3. The method according to claim 1, wherein the financial transaction comprises a debit transaction.
 4. The method according to claim 1, wherein the financial transaction comprises a credit transaction.
 5. A method comprising: receiving information about a plurality of financial transactions; processing the information to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement; and transmitting information about a financial transaction that is eligible for same-day settlement to a relationship bank based on a determination that at least one of the plurality of financial transactions is eligible for same-day settlement, wherein, to settle a financial transaction that is eligible for same-day settlement, the relationship bank electronically transfers funds associated with the financial transaction that is eligible for same-day settlement into an account associated with an originator of the financial transaction that is eligible for same-day settlement, in accordance with a previously established sharing model.
 6. The method according to claim 4, wherein the account comprises a demand deposit account.
 7. The method according to claim 5, wherein the processing comprises using routing or transit numbers associated with each of the plurality of financial transactions to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.
 8. The method according to claim 5, wherein the plurality of financial transactions comprise debit transactions.
 9. The method according to claim 5, wherein the plurality of financial transactions comprise credit transactions.
 10. The method according to claim 5, wherein the processing comprises comparing routing or transit numbers associated with each of the plurality of financial transactions with routing or transit numbers associated with the respective relationship banks to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.
 11. A system comprising: a processor to receive information about a plurality of financial transactions; and a sorting mechanism to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement; and transmit information about a financial transaction that is eligible for same-day settlement to a relationship bank based on a determination that at least one of the plurality of financial transactions is eligible for same-day settlement, wherein, to settle a financial transaction that is eligible for same-day settlement, the relationship bank electronically transfers funds associated with the financial transaction that is eligible for same-day settlement into an account associated with an originator of the financial transaction that is eligible for same-day settlement, in accordance with a previously established sharing model.
 12. The system according to claim 11, wherein the account comprises a demand deposit account.
 13. The system according to claim 11, wherein the sorting mechanism uses routing or transit numbers associated with each of the plurality of financial transactions to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.
 14. The system according to claim 11, wherein the plurality of financial transactions comprise debit transactions.
 15. The system according to claim 11, wherein the plurality of financial transactions comprise credit transactions.
 16. The system according to claim 11, wherein the sorting mechanism compares routing or transit numbers associated with each of the plurality of financial transactions with routing or transit numbers associated with the respective relationship banks to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.
 17. A method comprising: receiving a plurality of payment instructions, each of the plurality of payment instructions comprising an amount and a routing or transit number associated with an account for redeeming payment; combining the plurality of payment instructions into a financial transaction file; and transmitting the financial transaction file to a processor for same-day settlement, wherein, the processor compares the routing or transit numbers associated with each of the plurality of payment instructions in the financial transactions file with routing or transit numbers associated with relationship banks to determine whether at least one of the plurality of payment instructions is eligible for same-day settlement, and wherein, to settle a payment instruction that is eligible for same-day settlement, the relationship bank electronically transfers the amount associated with the respective payment instruction that is eligible for same-day settlement into an account associated with the recipient of the payment instruction that is eligible for same-day settlement, in accordance with a previously established sharing model.
 18. The method according to claim 17, wherein the account comprises a demand deposit account.
 19. The method according to claim 17, wherein the plurality of payment instructions comprise debit transactions.
 20. The method according to claim 17, wherein the plurality of payment instructions comprise credit transactions.
 21. A computer-accessible medium encoded with computer program code effective to perform the following: receive a financial transaction; and transfer funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated, wherein the financial transaction is one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement using routing or transit numbers associated with an entity that receives the financial transaction, in accordance with a previously established sharing model.
 22. A computer-accessible medium encoded with computer program code effective to perform the following: receive information about a plurality of financial transactions; process the information to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement; and transmit information about a financial transaction that is eligible for same-day settlement to a relationship bank based on a determination that at least one of the plurality of financial transactions is eligible for same-day settlement, wherein, to settle a financial transaction that is eligible for same-day settlement, the relationship bank electronically transfers funds associated with the financial transaction that is eligible for same-day settlement into an account associated with an originator of the financial transaction that is eligible for same-day settlement, in accordance with a previously established sharing model.
 23. A computer-accessible medium encoded with computer program code effective to perform the following: receive a plurality of payment instructions, each of the plurality of payment instructions comprising an amount and a routing or transit number associated with an account for redeeming payment; combine the plurality of payment instructions into a financial transaction file; and transmit the financial transaction file to a processor for same-day settlement, wherein, the processor compares the routing or transit numbers associated with each of the plurality of payment instructions in the financial transactions file with routing or transit numbers associated with relationship banks to determine whether at least one of the plurality of payment instructions is eligible for same-day settlement, and wherein, to settle a payment instruction that is eligible for same-day settlement, the relationship bank electronically transfers the amount associated with the respective payment instruction that is eligible for same-day settlement into an account associated with the recipient of the payment instruction that is eligible for same-day settlement, in accordance with a previously established sharing model.
 24. A method comprising: receiving a financial transaction; and transferring funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated, wherein the financial transaction is one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement using an indicator associated with the financial transaction, in accordance with a previously established sharing model. 